Greater Marketability Created for TIC Office Property
National Asset Services (NAS), one of the Country’s leading commercial real estate companies, successfully revitalized another Class-A commercial property in financial distress with greater marketability created for TIC office property in time for sale by ownership ahead of a maturing loan.
NAS assumed asset management responsibility for 300 Four Falls, a 298,371 square-foot, Class-A office property in February 2014. Company executives directed a swift and aggressive plan of action to increase revenue while reducing operating expenses with cost effective maintenance and prudent capital expenditures. In less than two years, occupancy increased to 98% and net operating income increased 16%, establishing an enhanced market position for sale of the property.
Under NAS’ leadership, additional space leased in 2014 and 2015 totaled 27,559 square feet, just over 9% of the building’s leasable square footage. The additional leasing filled space vacant since the 31-member TIC group acquired the property in 2005. During the same two-year period, NAS and the new property management company CBRE|Fameco, successfully increased tenant renewals by raising tenant approval from extreme dissatisfaction, experienced under prior administration, to support of the management team.
“We successfully met the challenges presented by the factors that placed this Class-A property in financial distress head on, better positioning the property for sale,” commented Karen E. Kennedy, President and Founder of NAS. “We are pleased to have created the best possible outcome for our clients while delivering a property with upside potential to the buyer.”
“Ownership saw a complete change from reactive management to proactive management,” commented John Moffat, a member of the 300 Four Falls Steering Committee. “Within two weeks of taking over, NAS was on top of the issues at the property, including deferred maintenance, capital improvements, leasing, tenant relations and lender relations.”
“NAS demonstrated an outstanding ability to navigate simultaneous complex challenges in a professional, diligent, transparent, and most importantly effective manner,” commented Jeff Resnik, 300 Four Falls Steering Committee member. “Within a very tight timeline NAS successfully identified and addressed several physical maintenance and tenant relation issues which had been impairing our leasing efforts, and as a direct result of this work we were able bring to market a well-maintained and fully leased asset.”
“NAS took over the management of 300 Four Falls at a time when it was in serious trouble, having been grossly mismanaged for several years of unacceptable vacancy, maintenance problems, deteriorating relationships with the tenants, and with poor communication with the investors,” commented Steering Committee members, Judith and Michael Margulies. “NAS dramatically provided the reverse with refreshing transparency to our Steering Committee and all investors. It culminated with the recent, successful sale of this Class-A property.”
Built in 2003, 300 Four Falls consists of seven stories constructed atop a six-story parking garage and offers over 400 feet of frontage along the Schuylkill Expressway. The building is within one-half mile of Schuylkill Expressway and Interstate 476 interchange.